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A consulting company in Singapore is an ordinary private limited company. ACRA charges S$315 to register it (S$15 for the name and S$300 to register). The official pages read for this guide list no general licence for management or business consulting, but a regulated field can bring its own rules. Profit is taxed at a flat 17%. Checked .
SingaporeCompanySetupGuide.com is an independent guide. It does not act for ACRA, IRAS or MOM. A provider that takes your request from our form may pay us a referral fee.
Is there a licence for consulting?
Not as a general rule in the sources read here. That is a narrower claim than "no licence ever". Consulting is a label, and what you advise on decides the answer. If you advise on investments, payments or other regulated work, a regulator such as MAS may have a say. Law, accountancy and similar professions have their own bodies. This guide has not checked those sectors, so it names none of their rules. Do two things before you sell:
- Search the GoBusiness licence directory by activity.
- Ask the regulator in your field in writing if the directory does not settle it.
If your advice touches payments or funds, read fintech company and MAS licence for the MAS side.
Company or sole proprietorship?
| Point | Private limited company | Sole proprietorship |
|---|---|---|
| Legal identity | Separate from you | Same as you |
| Liability for client claims | Limited to the company | Personal |
| Owners | One or more shareholders | One owner only |
| Tax | Corporate rate, 17% | Your personal rate |
For a one-person freelance practice with small clients, a sole proprietorship can be enough. See sole proprietorship. A firm that wants staff, a partner or enterprise clients usually wants a company. See private limited company.
How do you register?
- Pick a name and reserve it for S$15.
- Choose the SSIC code for the work you invoice. ACRA takes a primary and, if needed, a secondary code. See SSIC code.
- Register the company for S$300 with at least one locally resident director and a company secretary.
- Set a registered office in Singapore.
Foreigners must use a corporate service provider to register.
How is a consulting firm taxed?
Company profit is taxed at 17% of chargeable income. A new company gets a start-up exemption for the first 3 years of assessment: 75% off the first S$100,000 and 50% off the next S$100,000. After that a partial exemption applies, at 75% off the first S$10,000 and 50% off the next S$190,000. Consulting income often arrives from overseas clients, and IRAS treats foreign-sourced income by where it is received and earned. The detail is on corporate tax.
If your taxable turnover goes above S$1 million, GST registration becomes mandatory.
Can a foreigner run it from Singapore?
Owning a company and living here are separate. The pass depends on who you are and the business.
- EntrePass. MOM wants a private limited company with the pass holder holding at least 30%, and a venture-backed or innovative business. A plain advisory shop may not qualify. See EntrePass.
- Employment Pass for an owner-director. See Employment Pass for a company director.
Fees for either pass are S$105 to apply and S$225 on issue, according to MOM.
What does a consultant need to keep an eye on?
- The 14-day rule for reporting a change of business activity.
- The annual return within 7 months after year end, at S$60.
- Estimated chargeable income within 3 months after year end.
- Accounting records for at least five years.
- A fine of up to S$1,000 if the company secretary post stays empty for over six months.
Who must be on the board?
ACRA requires at least one director who is 18 or older and ordinarily resident in Singapore, plus a company secretary appointed within six months. The secretary must be a real person and cannot be the sole director. A foreign founder with no local resident can hire one, but the person is legally responsible. ACRA lists fines up to S$5,000, up to two years in jail and a five-year ban for director breaches. Read nominee director first.
Which route fits which founder?
| You are | Likely route |
|---|---|
| A Singapore citizen or PR going solo | Sole proprietorship or company, your choice |
| A Singapore resident with a partner | Company with two shareholders |
| A foreigner living abroad | Company through a corporate service provider with a resident director |
| A foreigner who wants to move here | Company, plus a pass test through MOM |
What about hiring and banking?
The moment you hire a local employee, CPF contributions and payroll duties start. See CPF for employers. For banking, each bank sets its own rules and asks who owns the firm and where client money comes from. This guide has no official bank rule to quote, so see business bank account.
What should the first month look like?
Reserve the name, register, open the bank account and write your first client contract in that order. The contract should name the company, not you, as the supplier. Keep invoices and receipts from day one, because the company must keep accounting records for years and file tax returns on them.
When does a provider help?
A provider can register the company, supply an address, act as company secretary and file the yearly returns. They do not decide whether your advice is regulated. Use the quote form and we pass the request to suited providers.
Sources
- ACRA, fees: https://www.acra.gov.sg/manage/companies/service-transaction-fees/ (S$15 and S$300)
- ACRA, SSIC code: https://www.acra.gov.sg/register/business/choosing-reserving-a-business-name/finding-the-right-ssic-code/
- IRAS, corporate income tax: https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes
- MOM, EntrePass eligibility: https://www.mom.gov.sg/passes-and-permits/entrepass/eligibility
- GoBusiness licence directory: https://licensing.gobusiness.gov.sg/licence-directory/sfa/food-shop-licence (used to show licences are listed by agency)
